Abstract
M.Comm.
In recent years many South African companies made substantial progress in
penetrating the global market. This presented a vast array of opportunities, but
also fierce competition. In this study it is indicated that broad banding are
permitting organisations to operate more effectively in the business environment.
Consequently, it is the objective of this study to gain insight into broad banding
from the South African industrial perspective, assess the factors and propose
guidelines that are needed in order for broad banding to be successful.
In the literature study the traditional and modern organisation structure and
remuneration systems are contrasted and the importance of the change process in
achieving the desired state is emphasised. It is shown that broad banding aligns
with the concept of the modern organisation and to arrive at this state a disciplined
and logical approach must be followed. Broad banding is identified as a
compensation system that not only facilitates the change process to the modern
organisation, but also provides a solid foundation to build upon
The second part of the literature study addresses many of the questions
surrounding broad banding and provides guidelines for the design and
implementation of broad banding. The study presents amongst others the
background of broad banding, design and implementation aspects, remuneration
within bands, controlling cost, communication and training.
A South African company within the industrial environment formed the basis of the
practical study. The forces initiating the broad banding process are identified and
discussed and the resulting remuneration strategy presented. A review of a the
three-stage process follows which constitutes a pre-implementation,
implementation and post-implementation phase. The above process is scrutinised
and a number of learning points developed by the author. A recommended model
is provided for implementation of broad banding. The findings from the literature
research and the industrial company are combined to provide guidelines on what
to expect and how to enhance success.